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Market Highlights: Here is why these stocks trended over the weekend

14 March 2022 By
  • Equity markets bled on Friday as US inflation hit new 40 year high
  • JPMorgan downgraded Chevron as Buckle topped Q4 earnings estimates
  • Pearson rejects $9.16 billion takeover proposal

Equity markets bled as US inflation hits record high

Last week global equity markets shed significant gains following an announcement that consumer inflation in the US had hit a new 40-year high at 7.9%. Apart from the inflation, equity markets also were affected following the European Central Bank’s announcement that it is accelerating exit from its stimulus asset purchase program.

Wall Street was down on the inflation data and gave up part of the previous session's rally gains. Also, the Eurozone stocks dropped with most reaching session following the surprise announcement from ECB.

JPMorgan downgrades Chevron to Sell

Chevron Corporation (NYSE: CVX) shares have gained 40% since the start of the year, but JPMorgan's Phil Gresh thinks this is as far as the oil giant gets for some time. As a result, Gresh downgraded the stock to Sell on Friday and set a target price of $169. This is a bold call given the Russia-Ukraine conflict has led to an increase in oil prices to record levels.

The analyst feels that Chevron stock is fairly valued at $170, but he is bullish on competitors like Occidental, Imperial, Exxon, Cenovus, and others. Gresh predicts an average Brent oil price of $90 this year.

Buckle tops Q4 earnings estimates.

Buckle Inc. (NYSE: BKE) shares were up almost 1% after the apparel retailer announced Q4 earnings that beat estimates. The company reported a net income of $83.9 million or $1.69 per share compared to $65.6 million or $1.33 per share a year ago. Sales were up 20% YoY to $380.9 million. Analysts had predicted sales of $380.9 and earnings of $1.48 per share.

Digital sales were up 10.5%, while comparable-store sales increased 20%, according to analysts' expectations.

Pearson rejects $9.16 billion acquisition bid from Apollo Global

Pearson Plc shares were up 20% on Friday, and the company rejected a $9.16 billion takeover bid from Apollo Global Management Inc. The company indicated that the private equity firm’s valuation of 854.2 pence considerably undervalued it.

The company's board unanimously rejected the proposal. This will be the second time Pearson is rejecting a proposal from the equity firm. In November, Apollo Global proposed to acquire Pearson at 800 pence per share.